A local area service in Part 7, Division 5 of the Community Charter is
any municipal service that is designed to benefit a particular part of the
municipality and is paid for in whole or in part by local property owners through a
local service tax. Local area services may be initiated either by
owners of property in the proposed local area, or by the municipal
council. Where initiated by council, the proposed service is
subject to a petition against. Each local area service must be
established by bylaw.
A local service tax is created by council to
pay all or part of the cost of a local area service. The tax may be
structured as a property value tax, a parcel tax or a combination of
the two. Where developed to collect monies for a business improvement area (a
specific type of local area service), the tax may be based on any
factor chosen by council. The form of the local service tax
ultimately chosen must be specified in the local area service bylaw.
The Community Charter's provisions governing local area services replace
the sections on local improvements, business improvement areas and specified areas
in the Local Government Act.
Please direct questions or comments to
Advisory Services Branch.